The Allowance for Uncollectible Accounts Currently Has a Credit Balance

Multiple Choice

The Allowance for uncollectible accounts currently has a credit balance of $200.The company's management estimates that 2.5% of net credit sales will be uncollectible.Net credit sales are $115,000.What will be the amount of Uncollectible account expense reported on the income statement?

A) $3,275
B) $3,075
C) $2,875
D) $2,675